Figure 4-13 The Xiang plant has two categories of overhead: maintenance and inspection.
Costs expected for these categories for the coming year are as follows:
The plant currently applies overhead using direct labor hours and expected capacity of 50,000 direct labor hours.The following data have been assembled for use in developing a bid for a proposed job:
Total expected machine hours for all jobs during the year is 25,000, and the total expected number of inspections is 1,500.
-
Refer to Figure 4-13.Using direct labor hours to assign overhead, the total cost of the potential job would be
A) $2,500.
B) $5,500.
C) $4,000.
D) $4,500.

Question

Figure 4-13 The Xiang plant has two categories of overhead: maintenance and inspection.
Costs expected for these categories for the coming year are as follows:
 The plant currently applies overhead using direct labor hours and expected capacity of 50,000 direct labor hours.The following data have been assembled for use in developing a bid for a proposed job:
 Total expected machine hours for all jobs during the year is 25,000, and the total expected number of inspections is 1,500.
-
Refer to Figure 4-13.Using direct labor hours to assign overhead, the total cost of the potential job would be
A) $2,500. 
B) $5,500. 
C) $4,000. 
D) $4,500.

Quizplus · Accepted Answer

The Answer of Figure 4-13 The Xiang plant has two categories of overhead: maintenance and inspection.
Costs expected for these categories for the coming year are as follows:
 The plant currently applies overhead using direct labor hours and expected capacity of 50,000 direct labor hours.The following data have been assembled for use in developing a bid for a proposed job:
 Total expected machine hours for all jobs during the year is 25,000, and the total expected number of inspections is 1,500.
-
Refer to Figure 4-13.Using direct labor hours to assign overhead, the total cost of the potential job would be
A) $2,500. 
B) $5,500. 
C) $4,000. 
D) $4,500.

Figure 4-13 the Xiang Plant Has Two Categories of Overhead